Encore Bancshares Inc. in Houston said Friday that its second-quarter net income fell 75% from the year earlier, to $481,000, because of higher chargeoffs.
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Earnings per share of 4 cents fell 12 cents short of the average of analysts' estimates, according to Thomson Reuters.
Chargeoffs more than quintupled from a year earlier and more than tripled from the previous quarter, to $3.5 million, or 1.14% of average loans.
Encore said $2.1 million of the total is for the partial chargeoff of a $6.3 million loan to a Houston law firm.
It fattened the loan-loss provision 300% from a year earlier and 150% from the previous quarter, to $3.8 million.
Still, shares of Encore rose 0.97% Friday, to close at $15.57.
